Why am I getting more back from state than I paid?

[scottl31]

I'm doing my daughter's taxes free online. Just very basic.

She earned $8742 and had $125 state (CA) taxes withheld. But TT is saying she will get $351 back.

Why would she get back almost triple what she paid in?

Thanks!

[VolvoGirl]

Need more info like.....How old is she?  Is she a full time student?  Are you claiming her as a dependent?  

[scottl31]

She's 22. She was a part time student but her classes recently ended. She is in a different city than I am where she had the classes. But she has this job there now.

I think I claimed her as a dependent last year when she didn't have a job, but I haven't even started my taxes yet. Should I not claim her as a dependent this year when I do my taxes?

[VolvoGirl]

When I entered her as your dependent the refund is $95.

When I enter her as Single and not a dependent the refund is $347.  She gets a $222  Earned Income Credit + 125 withholding.

If she is in a different state she might not need to file Calif but the other state.  

[scottl31]

She is also in California.

So as a dependent, she would only get back $95 of the $125 that was withheld?

So should I just choose dependent/non dependent for whatever would be most advantageous between the two of us? I don't know yet what the benefit to taxes would be by claiming her as dependent like last year. She only had the job for one third of the year if that matters.

[VolvoGirl]

You don't get a choice.  If she  is under 24 on Dec 31 she might qualify as your dependent if she was a full time student.  Even if you don't claim her, she has to say on her return she CAN be claimed.  But you said she was part time.  I'm not clear on the Full Time rules.  Maybe someone else can reply @xmasbaby0 

Who can you claim
https://ttlc.intuit.com/community/credits-and-deductions/help/who-can-i-claim-as-my-dependent/01/267...

See IRS Pub 501 starting on page 10 bottom Dependents and Worksheet 
https://www.irs.gov/pub/irs-pdf/p501.pdf

Rules to claim a dependent
https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODb...

[scottl31]

It's gotten complicated. I guess I can't complete her taxes until I get mine going.

From those links you gave, it seems like I can't claim her. She was over 19, but not a full time student.

[VolvoGirl]

Why can't you finish her return?  Each return is separate.  She doesn't need anything from your return if you can't claim her.  

[scottl31]

Because I guess I won't know for sure until I key in all the particulars for sure on mine.

But is the key question for her return, CAN she be claimed on someone else's return? I mean if she can be claimed on mine, but I don't claim her, does she still have to say yes and only get the $95 back?

[MindyB]

Yes, you are correct, if she can be claimed, she would need to answer as such, and only would get back the lesser amount.  However, please review the information as to whether she can be claimed before proceeding.  

Here are the rules for claiming a dependent for a child that is not a full time student and over 18:

• Do they live with you? Your relative must live with you all year as a member of your household or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list, including son and daughter, so you have met this test.
• Do they make less than $5,200 in 2025? Your relative can't have a gross income of more than $5,200 in 2025 and be claimed by you as a dependent. 
• Do you financially support them? You must provide more than half of your relative's total support for the year.

Here is an article you may find helpful: Rules for Claiming Dependents on Taxes

[scottl31]

Yes, so she was living in another city in California (where i live.) She was finishing the last few classes she needed, but is still there and working.

She earned $8492, so more than $5200.

I did financially support her for the year.

Does that mean I CAN and I should claim her and let her get the lower amount refund?

[AmyC]

Financial support is not enough. Living in another city for education purposes, counts as living with you. Otherwise, it doesn't. The IRS has a quick quiz, Dependent, to determine if you should claim your daughter. I went through it answering no to full time student and yes to earning more than $5200 along with other questions. My answers said not to claim but I didn't know all the correct answers so you should go through Dependent and answer the questions to get the correct answer for your situation. Once you know the correct answer, both returns can be done. If you can't claim her, then her return qualifies for the larger numbers and she will not be part of your return.